Gaining greater perspective will help entrepreneurs deal with insecurities head-on. When faced with uncertainty and environmental turbulence, it can be difficult to make decisions that will define the future. To make the process easier, experts suggest reducing overconfidence in what you know, reducing the time needed to make the decision, and getting the opinion of an outsider. Additionally, it is important to understand and see fear as a natural part of business.
When making important decisions, it is important to gain a greater perspective. This can be done by reasoning by analogy, imitation, empirical rules, reformulation, deference to experts, rigorous debate, and experimentation. Joseph Bikart, executive coach and author of The Art of Decision Making, argues that one of the reasons certain decisions can be so difficult to make is because they evoke frightening memories. Simply copying the strategies and practices of rival companies will not create a unique and defensible strategic position.
To ensure success, it is important to develop and maintain unique sources of competitive advantage. For example, Chuck Knight, former CEO of Emerson Electric, always sparked heated debates during his company's strategic planning meetings. Similarly, Jack Welch used to explain that constructive conflict was an essential feature of strategic planning at General Electric. These two general rules allow managers to quickly eliminate unattractive offers and conserve the organization's valuable resources.
Learning to understand and see fear as a natural part of business is key if entrepreneurs want to last in the long term. Making difficult decisions can be daunting for entrepreneurs but with the right strategies in place, it can be made easier. By reducing overconfidence in what you know, reducing the time needed to make the decision, and getting the opinion of an outsider, entrepreneurs can make decisions that will define their future.
